Cooper to Sell or Spin Off Auto Units

Houston-based Cooper Industries Inc. said it may sell or spin off its automobile parts businesses to concentrate on its more profitable electrical products and hardware businesses. The combined units could fetch as much as $2 billion, analysts said. The businesses, which make Champion spark plugs, Anco windshield wipers, Wagner lights and brake parts, as well as Moog steering and suspension parts, have 14,000 employees and $1.9 billion in total sales. Auto products accounted for about 36% of Cooper Industries’ $5.3 billion in revenue last year, and now account for 34%, the company said. Electrical products generate 52% of revenue, and tools and hardware account for 14%. Auto makers are increasingly pressing suppliers to cut costs by delivering pre-assembled systems, prompting companies to buy and sell units to boost profit. Shares of Cooper Industries jumped $4.50 to close at $65.38 on the NYSE.